Biofuels: 'Irrational' and 'worse than fossil fuels'

The UK's "irrational" use of biofuels will cost drivers around ₤ 460 million over the next 12 months, a think tank says.

A report by Chatham House, external states the growing dependence on sustainable liquid fuels will also increase food costs.

The author states that biodiesel made from grease was worse for the environment than fossil fuels.

Under EU law, external, biofuels are set to comprise 5% of the UK's transportation fuel from today.

Since 2008, the UK has actually required fuel providers to add a growing percentage of sustainable products into the petrol and diesel they supply. These biofuels are primarily ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House says that reaching the 5% level suggests that UK motorists will need to pay an extra ₤ 460m a year since of the higher expense of fuel at the pump and from filling more frequently as biofuels have a lower energy material.

The report say that if the UK is to meet its commitments to EU energy targets the expense to drivers is most likely to increase to ₤ 1.3 bn per annum by 2020.

"It is tough to find any excellent news," Rob Bailey, senior research fellow at Chatham House, told BBC News.

"Biofuels increase costs and they are an extremely pricey method to reduce carbon emissions," he stated.

The EU biofuel requireds are likewise having hugely distorting impacts in the marketplace. Because used cooking oil is considered as one of the most sustainable types of biodiesel, the price for it has increased rapidly. Rob Bailey says that towards the end of 2012 it was more costly than refined palm oil.

"It produces a financial incentive to purchase refined palm oil, prepare a chip in it to turn it into used cooking oil and after that offer it at revenue,"

"It is crazy but the incentives are there."

There are likewise frets that taking EU land out of production to grow rapeseed oil in particular is developing more problems than it fixes. The more fuel of this type that is put into vehicles the larger the deficit developed in the edible oils market. This had actually lead to increased imports of palm oil from Indonesia, typically produced on deforested land.

"Once you take into consideration these indirect impacts, biofuels made from veggie oils actually result worldwide in more emissions than you would obtain from using diesel in the very first place," stated Rob Bailey.

"Plus you are asking motorists to pay more for the fuel - it makes no sense, it is a completely illogical method."

Biofuel benefits

The European Biodiesel Board (EBB), which represents the market, external throughout the EU, stated it was conscious of the problems triggered by the mandate. But it thinks that biofuels have lots of positives.

"Blaming biofuels for all the troubles in the world is a bit too exaggerated," said Isabelle Maurizi, task supervisor at the EBB.

"It has brought great deals of advantages. It has improved the security of our diesel